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Money Saving Minute #030 – Mortgage Insurance Options. Last week we talked about the changes that FHA will be making to their annual mortgage insurance premiums. It was mentioned at the end of the video that there are other options available. Mortgage insurance is available for conventional loans for borrowers with less than 20% equity. The difference is private mortgage insurance carriers have competition so the rates are often better than FHA. Private mortgage insurance is also prorated to the amount of equity that you do have in a home. Finally, private mortgage insurance will have payment options such as monthly, onetime payment or split premiums. If you are currently paying mortgage insurance or have been in an FHA loan for several years now is a good time to have your mortgage reviewed. Take a look at all of your options and make sure that you are in the best loan product before rates and programs change.
